Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he recused himself from pre-Budget discussions on reducing the higher rate of Capital Gains Tax.

The OBR have confirmed that residential property transactions will be around 60,000 higher over the 5-year forecast, owing to the cut to the higher rate of Capital Gains Tax (CGT) on residential property gains from 28 per cent to 24 per cent.

The published costings note which covers underlying assumptions and methodologies, can be found here:

https://assets.publishing.service.gov.uk/media/65e7920c08eef600155a5617/Published_Costing_Document_Spring_Budget_2024_Final.pdf

Further information on the methodology also can be found here:

https://obr.uk/letters-to-john-mcdonnell-mp-and-sir-geoffrey-clifton-brown-mp/

As set out in the Ministerial Code, there is an established process in place for the declaration and management of private interests held by ministers. This process ensures that steps are taken to avoid or mitigate any potential or perceived conflicts of interest. These interests were properly declared in line with ministerial code. The Chancellor has also said: “I’ve decided that when it comes to properties I own, it would be wrong for me to benefit from a direct decision like that. So I will pay tax on the previous rate.”